L W MIDDLETON Vs. HARRY PLAYFAIR

JUDGEMENT

(1.) This is an appeal by the defendant in a suit for recovery of arrears of salary and commission and for damages for breach of contract. The facts material for the solution of the questions in controversy are really beyond dispute and may be briefly recited.

(2.) The defendant Middleton is the proprietor of what is known as the Sonapur Tea Estate in Kamrup. He managed the estate himself, but as in 1918, he obtained a commission in the army and had to leave for Persia, it became necessary for him to appoint a manager. He advertised for the post, with the result that the plaintiff Playfair saw him on the subject, and was appointed as his manager on a salary of Rs. 500. The initial arrangement was that besides his pay, the manager would get a furnished bungalow, all servants, the use of a motor car and a commission of ten per cent. on profits over a specified minimum. On this arrangement, Playfair took over charge on the 1 May, 1918, and on the next day Middleton left to join his regiment. The terms of the agreement between them were subsequently embodied in a document which was executed on the 11 July, 1918, and came into force from the 1st January, 1919. An agreement made on the eleventh day of July, 1918, between Lionel William Middleton of Kamrup in the District of Assam the Proprietor of the Sonapur Tea Estate Kamrup aforesaid (hereinafter referred to as " the Proprietor") of the one part and Harry Playfair also of Kamrup in Assam at present acting as Manager of the said Sonapur Tea Estate (hereinafter referred to as "the Manager") of the other part whereby it is Agreed and declared as follows: 1. The Proprietor agrees to employ She Manager and the Manager agrees to serve the employer as Manager of the said Sonapur Tea Estate for the term of five years with effect from the first day of January, 1919, with liberty nevertheless to either of the parties hereto upon the termination of the present war to terminate the agreement by giving to the other party six calendar months notice in writing of his intention in that behalf. 2. The remuneration of the Manager for such service shall consist of (a) a fixed monthly salary of Rs. 500 plus the free use of the various personal servants in the employment of the Proprietor now working at the said Tea Estate with liberty to the Manager at the cost of the principal to engage new servants in the place of any of the present servants who may die or may leave the employment of the principal, but so always that the amount of the wages paid to such new servants shall not exceed the amount of the wages paid to the present servants, and (b) a sum equivalent to twenty-five per cent. on the net profits derived from the said Tea Estate in respect of every year ending on the thirty-first day of December after allowing interest on money borrowed and deducting all usual charges and out- goings and such sum or sums as the Proprietor shall consider it prudent and proper to deduct or set aside in respect of bad or doubtful debts provided that in the event of the determination of the agreement otherwise than on the thirty-first day of December in any year there shall be paid to the Manager a proportionate part only of the last-mentioned sum corresponding to the period that shall have elapsed since the date of the last account.

(3.) The manager shall also be provided with a furnished bungalow on the said Tea Estate for the use of himself and his family free of rent.